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Market	  Survey:	       Insights	  into	  the	  users	  of	  Spreadsheets	  and	  Financial	  Models	                     ...
¡    Financial	  models	  are	  crucial	  to	  the	  understanding	  and	        decision	  making	  of	  many	  industri...
¡     The	  report	  sought	  to	  develop	  a	         deeper	  understanding	  of	  	  the	         processes,	  practi...
¡    52%	  of	  respondents	  first	  search	  Google/Internet	  for	  modeling	        assistance,	  almost	  double	  th...
¡    Almost	  half	  of	  the	  respondents	  were	  willing	  to	  modify	  an	  existing	        model	  that	  is	  on...
Which	  best	  describes	  the	  field	  you	  work	  in?	                            How	  large	  is	  the	  organisa/on	...
Where	  have	  you	  developed	  most	  of	  your	  financial	                 Which	  of	  the	  following	  best	  descri...
Per	  year,	  how	  many	  projects	  /	  transac/ons	                                           Within	  your	  role,	  h...
When	  building	  a	  financial	  model,	  how	  much	                                               Within	  your	  organi...
Do	  you	  spend	  any	  /me	  searching	  for	  relevant	                               Where	  do	  you	  first	  seek	  ...
Which	  best	  describes	  the	  kind	  of	  financial	                                  How	  long	  would	  you	  be	  wi...
How	  comfortable	  are	  you	  modifying	  a	                                                         In	  order	  for	  ...
What	  is	  your	  biggest	  dislike	  or	  problem	  with	                                          When	  building	  a	 ...
Wastefulness	                                               Distrust	               82	  mins	                            ...
¡    What	  are	  the	  best	  methods	  for	  teaching	  financial	  modelers?	  ¡    How	  can	  greater	  transparency...
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Microsoft Excel and Financial Modeling - Global Survey Results (July 2011)

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Over 320 Microsoft Excel & Financial Modelers worldwide.

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www.vumero.com/blog

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Microsoft Excel and Financial Modeling - Global Survey Results (July 2011)

  1. 1. Market  Survey:   Insights  into  the  users  of  Spreadsheets  and  Financial  Models     Summary  Presentation     July  2011  
  2. 2. ¡  Financial  models  are  crucial  to  the  understanding  and   decision  making  of  many  industries  ¡  Most  prevalent  in:     ¡  Professional  services   ¡  Infrastructure   ¡  Sharemarket   ¡  Logistics  and  procurement   ¡  Strategy   ¡  Industrial  operations  processes   2  
  3. 3. ¡  The  report  sought  to  develop  a   deeper  understanding  of    the   processes,  practices  and  behaviours   underpinning  the  use  of  spreadsheets   and  financial  modeling    ¡  The  survey  examined  the  preparation,   resource  sharing,  capabilities  and   perceived  risks  of  over  300  financial   model  users  worldwide       3  
  4. 4. ¡  52%  of  respondents  first  search  Google/Internet  for  modeling   assistance,  almost  double  the  number  who  turn  to  wok  colleagues  ¡  34%  built  between  4-­‐10  financial  models  per  year  ¡  Large  organisations  (1000  people+)  appear  to  be  more  reliant  on   financial  modeling      ¡  86%  of  respondents  would  be  willing  to  spend  at  least  5  minutes   searching  for  a  financial  modeling  example    ¡  56%  of  respondents  say  that  the  majority  of  their  financial   modeling  knowledge  is  self  taught     4  
  5. 5. ¡  Almost  half  of  the  respondents  were  willing  to  modify  an  existing   model  that  is  only  “50%”  of  what  they  required  ¡  46%  of  models  take  between  1-­‐5  days  to  build  (e.g.  ≤40  hours)  ¡  “Scope  for  error”  is  one  of  the  largest  problems  faced  by  financial   modelers  ¡  Only  53%  of  respondents  are  “confident”  or  “very  confident”  their   models  are  free  from  serious  material  errors   5  
  6. 6. Which  best  describes  the  field  you  work  in?   How  large  is  the  organisa/on  you  work  for?   45.0%   40.0%   38.6%   Education   Government   5%   2%   35.0%   30.0%   25.0%   Industry   29%   20.0%   17.2%   15.0%   12.4%   11.7%   11.7%   10.0%   8.3%   Professional   Services   5.0%   64%   0.0%   Self-­‐Employed   <10  People   >1,000  People   200  to  1,000  People   50  to  200  People   10  to  50  People   6  
  7. 7. Where  have  you  developed  most  of  your  financial   Which  of  the  following  best  describes  you?     modeling  knowledge?   (Only  answer  one)   External  training   5%   70.0%   61.9%   60.0%   Training   50.0%   provided  by   employer   38.1%   40.0%   23%   30.0%   Self-­‐taught   20.0%   High  school  and/ 56%   or  University   10.0%   16%   0.0%   I  understand  the  technical  side  of   I  understand  the  commercial/ financial  modelling   business  side  financial  modelling   7  
  8. 8. Per  year,  how  many  projects  /  transac/ons   Within  your  role,  how  much  of  your  /me  is   require  you  to  undertake  a  significant  level  of   spent  financial  modeling?     financial  modeling?  40.0%   40.0%   34.4%  35.0%   35.0%  30.0%   28.2%   30.0%  25.0%   25.0%   20.2%  20.0%   17.2%   20.0%  15.0%   15.0%  10.0%   10.0%   5.0%   5.0%   0.0%   1-­‐3  models   4-­‐10  models   10-­‐20  models   >20  models   0.0%   0-­‐10%   10-­‐30%   30-­‐50%   >50%   8  
  9. 9. When  building  a  financial  model,  how  much   Within  your  organisa/on,  can  you  easily   /me  pressure  are  you  under?   access  useful  financial  model  examples?   40.0%   34.0%   33.7%   Extreme   5.1%   35.0%   30.0%   Significant   38.7%   25.0%   20.0%   17.9%   14.4%   Some   50.7%   15.0%   10.0%  Li@le  or  none   5.5%   5.0%   0.0%   0.0%   10.0%   20.0%   30.0%   40.0%   50.0%   60.0%   No   Limited  amount   Some   Lots   9  
  10. 10. Do  you  spend  any  /me  searching  for  relevant   Where  do  you  first  seek  help  if  you  have   examples  to  help  you  get  started?   problems  with  Excel  or  financial  modeling?     60.0%   51.7%  Occasionally   50.0%   40.0%   No   30.0%   27.2%   20.0%   12.9%   8.3%   Yes   10.0%   0.0%   0.0%   10.0%   20.0%   30.0%   40.0%   50.0%   60.0%   Colleague  at  work   Friend   “Help”  menu   Google/internet   10  
  11. 11. Which  best  describes  the  kind  of  financial   How  long  would  you  be  willing  to  spend   modeling  you  typically  do?     looking  for  an  appropriate  financial  model   example?   35.0%   33.0%   30.0%   27.1%   25.4%   25.0%   Building  50:50   financial   20.0%   44%   models  from   scratch   15.0%   40%   10.0%   8.2%   6.2%   5.0%   0.0%   Working  with   I  wouldnt   1-­‐5  minutes   5-­‐20  minutes   20-­‐60  minutes   UnYl  I  find   exisYng   what  I’m   financial   looking  for   models   16%   11  
  12. 12. How  comfortable  are  you  modifying  a   In  order  for  a  financial  model  example  to  be   colleague’s  financial  model?   relevant  and  useful  to  you  as  a  basis  for   building  a  new  financial  model,  how  much   Extremely   Not  at  all   of  it  would  you  be  willing  to  modify?     6%   comfortable   50.0%   20%   45.0%   43.3%   40.0%   35.0%   I  can  if  I  have  to   30.0%   34%   25.0%   22.3%   20.0%   15.0%   12.0%   12.7%   9.6%   10.0%   Comfortable   40%   5.0%   0.0%   10%   20%   30%   40%   50%   12  
  13. 13. What  is  your  biggest  dislike  or  problem  with   When  building  a  model,  how  confident  are   financial  modeling?     you  that  it  is  free  from  serious  errors?   My  lack  of   knowledge   Other  (please   specify)   14%   50.0%   22%   44.5%   45.0%   40.4%   40.0%   Takes  too  long   35.0%   15%   Lack  of   30.0%   supervision   25.0%   5%  Too  much  to  do   20.0%  for  one  person   Boring  and   tedious   15.0%   5%   3%   8.6%   10.0%   6.5%   5.0%   Too  much   scope  for   0.0%   Not  very   Moderately   Confident   Very  confident   error   36%   13  
  14. 14. Wastefulness   Distrust   82  mins   50%   Average  time  an  Executive  might   Reported  major  regular  errors  in   spend  per  day  searching  for  needed   financial  models,  including  finding  out-­‐ information   of-­‐date  information  frequently   10%  per  day   25%  Average  time  workers  spend  looking   for  the  information  they  need  to   Business’  trust  information  contained   perform  a  task  or  make  a  decision   in  financial  models   14  
  15. 15. ¡  What  are  the  best  methods  for  teaching  financial  modelers?  ¡  How  can  greater  transparency  and  efficiency  be  introduced  into   the  financial  model  review  process?  ¡  Which  industries  and  communities  can  benefit  most  from   understanding  the  benefits  of  financial  modeling?  ¡  How  can  key  stakeholders  better  understand  the  risks  associated   with  poor  subject  knowledge  and  “bad”  modeling?  ¡  Are  there  better  ways  to  share  financial  modeling  knowledge?  ¡  How  can  business  intelligence  better  leverage  the  power  of  Excel?   15  

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